Some people argue that limiting a CEO's pay may be a way to create good incentives
Indicate whether the statement is true or false
True
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Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidize the home-construction industry by giving the home-construction companies $10,000 for every house that they build. As a result of this,
A) the supply curve of new houses would shift leftward, since it now costs $10,000 more for builders to produce a house. B) the demand curve for new houses would shift rightward, since now every family would want to buy a house. C) the demand curve for new houses would shift leftward. D) the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price. E) c and d
The consumer price index (CPI):
A. measures the price of a fixed basket of goods and services relative to the price of that same basket in some base year. B. measures the price of a basket of goods and services that constantly changes as the composition of consumer spending changes. C. measures the amount of money that it takes to produce a fixed level of utility. D. is one of the many statistics in the National Income Accounts.
Stock options as a form of payment are designed to:
A. evade the equal-pay-for-equal-work provisions of the federal antidiscrimination law. B. boost the overall earnings of minimum-wage workers. C. offset monopsony. D. address the principal-agent problem.
Deadweight loss is present in both competitive and monopoly markets.
a. true b. false